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Is Silgan Holdings (SLGN) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.76 right now. For comparison, its industry sports an average P/E of 14.14. Over the last 12 months, SLGN's Forward P/E has been as high as 12.78 and as low as 10.48, with a median of 11.42.
Investors should also note that SLGN holds a PEG ratio of 2.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SLGN's industry has an average PEG of 2.83 right now. Over the last 12 months, SLGN's PEG has been as high as 2.56 and as low as 2.10, with a median of 2.28.
Another notable valuation metric for SLGN is its P/B ratio of 2.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.39. Over the past 12 months, SLGN's P/B has been as high as 3.74 and as low as 2.85, with a median of 3.14.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SLGN has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.04.
Finally, investors should note that SLGN has a P/CF ratio of 7.65. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.67. SLGN's P/CF has been as high as 8.60 and as low as 7.21, with a median of 7.90, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Silgan Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, SLGN sticks out at as one of the market's strongest value stocks.
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Is Silgan Holdings (SLGN) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.76 right now. For comparison, its industry sports an average P/E of 14.14. Over the last 12 months, SLGN's Forward P/E has been as high as 12.78 and as low as 10.48, with a median of 11.42.
Investors should also note that SLGN holds a PEG ratio of 2.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SLGN's industry has an average PEG of 2.83 right now. Over the last 12 months, SLGN's PEG has been as high as 2.56 and as low as 2.10, with a median of 2.28.
Another notable valuation metric for SLGN is its P/B ratio of 2.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.39. Over the past 12 months, SLGN's P/B has been as high as 3.74 and as low as 2.85, with a median of 3.14.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SLGN has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.04.
Finally, investors should note that SLGN has a P/CF ratio of 7.65. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.67. SLGN's P/CF has been as high as 8.60 and as low as 7.21, with a median of 7.90, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Silgan Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, SLGN sticks out at as one of the market's strongest value stocks.